HBA-JRA H.B. 1604 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1604 By: Thompson Ways & Means 7/22/1999 Enrolled BACKGROUND AND PURPOSE Currently, tax-exempt charitable organizations may purchase property after tax seizure for less than the minimum bid if no satisfactory bid is received. Also, a nonprofit organization that develops and rebuilds affordable housing may buy tax-foreclosed property before a public sale. H.B. 1604 extends the same authorizations to certain tax-exempt religious organizations and allows a taxing unit to waive accrued penalties and interest on delinquent tax for certain properties acquired by tax-exempt religious organizations. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 33.011(a), Tax Code, to authorize the governing body of a taxing unit to waive penalties and provide for the waiver of interest on a delinquent tax if the property for which the tax is owed is acquired by a tax-exempt religious organization that qualifies the property for exemption before the first anniversary of the date the religious organization acquires the property. Makes conforming changes. SECTION 2. Amends Section 34.01(e), Tax Code, to authorize an officer selling property pursuant to the foreclosure of a tax lien to bid the property off to a religious organization for less than the tax warrant amount or the market value of the property if a sufficient bid is not received. SECTION 3. Amends Section 34.015, Tax Code, to include a religious organization, that owns other property located in a municipality that is exempt from taxation under Section 11.20 (Religious Organizations) and has entered into a written agreement with the municipality regarding the revitalization of the land, among the entities to which land may be sold following the foreclosure of a tax lien in favor of the municipality or the seizure of land under Subchapter E, Chapter 33 (Delinquency) in a manner provided by the governing body of a municipality. Makes conforming changes. SECTION 4. Repealer: Section 11.433(e) (Late Application for Religious Organization Exemption), Tax Code. SECTION 5. Effective date: September 1, 1999. SECTION 6. Emergency clause.